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Better Artificial Intelligence Stock: Intel vs. AMD | The Motley Fool

Better Artificial Intelligence Stock: Intel vs. AMD | The Motley Fool
These companies are developing the hardware that makes AI possible and could deliver major gains in the coming years.

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The artificial intelligence (AI) market has seen significant growth, hitting nearly $200 billion in 2023 and projected to reach close to $2 trillion by 2030. AI stocks, particularly chip stocks, have captured the attention of Wall Street investors, with the Nasdaq Composite rising by 27% since last June. Two of the most attractive chip stock options are Intel and Advanced Micro Devices (AMD), both of which are poised to profit from the increasing demand for AI hardware.

Intel has recently revealed new AI chips for data centers, showing promising developments in the AI sector. The company's focus on chip design and manufacturing, along with competitive pricing for its AI offerings, positions it as an attractive long-term prospect for investors.

On the other hand, AMD is also making strides in the AI market, with new AI graphics processing units and upcoming chip releases that promise significantly improved AI capabilities. Despite its potential, AMD still has a long way to go before making a significant impact on Nvidia's market share.

When comparing Intel and AMD as AI stocks, Intel's recent AI chip releases and expansion into manufacturing make it a better choice over AMD, especially for long-term investors. With the lowest forward-price-to-earnings ratio and price-to-sales ratio among prominent chipmakers, Intel's stock is considered a strong buy at the moment.